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Staff Report
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Report To: General Government Committee
Date of Meeting: March 20, 2023 Report Number: FSD-009-23
Submitted By: Trevor Pinn, Deputy CAO/Treasurer
Reviewed By: Rob Maciver, Deputy CAO/Solicitor By-law Number:
File Number: Resolution#: GG-078-23
Report Subject: Development Charges Reserve Funds — transfers and amalgamations
Recommendation:
1. That Report FSD-009-23, and any related communication items, be received for
information.
2. That the balance in the DC Parking Reserve Fund be transferred to the Parking Lot
Reserve Fund in accordance with the transition rules in the Development Charges Act,
1997 for ineligible services.
3. That the remaining DC Reserve Funds be amalgamated and renamed in accordance
with paragraph 2.5 of Report FSD-009-23.
4. That all interested parties listed in Report FSD-009-23 be advised of Council's decision.
Municipality of Clarington
Report FSD-009-23
Report Overview
Page 2
The purpose of this report is to comply with the provisions of the Development Charges Act,
to outline the legislated transition options available for DC Ineligible Services reserve fund
balances and to amalgamate or rename the DC Eligible Services reserve funds. This report
further seeks Council approval to complete the necessary reserve fund transfers.
1. Background
Bill 108, More Homes, More Choice Act, 2019
1.1 Prior to the passing of Bill 108, More Homes, More Choice Act, 2019, the Development
Charges Act, 1997 allowed for the collection of development charges for any growth -
related capital unless it was a specified ineligible service. Following the passing of the
More Homes, More Choice Act, 2019, development charges may only be collected for
specified services.
1.2 Prior to the change, the Municipality collected development charges for the following
categories of service:
• General Government Services
• Library Services
• Emergency and Fire Protection Services
• Indoor Recreation Services
• Engineering Park Development and Facilities
• Operations
• Roads and Related Services
• Parking
1.3 Following the change and the adoption of the 2021 Development Charges By-law, the
Municipality now collects development charges for the following eligible service
categories:
• Growth Studies
• Library Services
• Fire Protection Services
• Parks and Recreation Services
• Services Related to Highways
1.4 With the reduction from eight service categories down to five categories, there is a need
to determine the preferred transfer options for the ineligible services reserve fund
balances and to amalgamate or rename certain DC reserve funds.
Municipality of Clarington
Report FSD-009-23
2. Transition Options, Amalgamation and Renaming
Ineligible Services Reserve Funds
Page 3
2.1 The revised Development Charges Act deemed parking as an ineligible service
category. The act outlined transition rules for reserve funds related to ineligible services
as follows:
Option 1 - The reserve fund shall be deemed to be a general capital reserve fund for
the same purpose, or
Option 2 - The municipality may allocate all the money in the fund to one or more
reserve funds established under development charge by-laws under the Act.
2.2 The table below outlines the reserve funds that adhere to the transition rules for the
transfer of the DC Parking Reserve Fund balance:
Options
Recommended Reserve Fund Options
Option 1 — transfer to a general capital reserve
fund for the same purpose
Parking Lot Reserve Fund
Option 2 — transfer to a DC reserve fund
DC - Services Related to Highways
2.3 Moving the DC Parking reserve fund balance into the Parking Lot Reserve Fund, is the
staff recommended option, to direct funds specifically towards the growth related needs
for parking.
Amalgamation and Renaming of DC Reserve Funds
2.4 The revised Development Charges Act requires the amalgamation and renaming of
some of the historical DC reserve funds.
2.5 The table below outlines the required adjustments to align with the revised eligible
service categories:
Municipality of Clarington
Report FSD-009-23
Page 4
DC Reserve Funds (old)
DC Reserve Fund (revised)
DC
- General Government
DC
— Growth Studies
DC
— Public Library
DC
— Library Services
DC
— Emergency Services
DC
— Fire Protection Services
DC
— Indoor Recreation Services
DC
— Parks and Recreation Services
DC — Engineering Park Development and
Facilities
DC
— Parks and Recreation Services
DC
- Operations
DC
— Services Related to Highways
DC
— Roads and Related Services
DC
— Services Related to Highways
3. Financial Considerations
3.1 The use of development charges is legislated under the Development Charges Act,
1997. The changes proposed to the reserve funds do not impact funding eligibility of
capital projects.
4. Concurrence
Not Applicable.
5. Conclusion
It is respectfully recommended that Council provide direction to staff on the preferred
transfer of the balance of the DC Ineligible Services reserve fund (DC - Parking). Staff
recommend Option 1 in paragraph 2.2 which is to transfer the funds to a like purpose
general reserve fund (Parking Lot Reserve Fund). Staff also recommend that Council
approves the amalgamation and renaming of the DC Eligible Services reserve funds as
identified in paragraph 2.5.
Municipality of Clarington
Report FSD-009-23
Page 5
Staff Contact: Michelle Pick, Accounting Services Manager / Deputy Treasurer, CPA, 905-
623-3379 ext.2605 or mpick@clarington.net.
Attachments:
Not Applicable
Interested Parties:
There are no interested parties to be notified of Council's decision.